UK households are cutting back on dining out and activities this summer as the impact of the cost-of-living hits, according to new data from intelligence platform Vypr.
Its July survey of 5,000 consumers from its 65,000 strong nationally representative panel has identified the extent to which rising costs are impacting spending and consumer sentiment.
52% of consumers say they are cutting back on eating out and takeaways. This compares to 30% trimming spend on groceries and just 16% on coffee. In addition, consumers stated that they are reducing their spending on days out and looking for cheaper and alternative activities, including taking homemade picnics and drinks on outings.
With mounting living costs and the imminent October energy price cap rise, the Vypr data shows spending behaviour has already seen major change. Days out and leisure trips are facing cutbacks by households, with 45% looking to reduce their spending with 11% completely stopping going out.
However, home drinking is likely to continue, with only 37% of consumers stating that they would cut back on alcohol purchases compared to spending on eating out or ordering takeaways – reinforcing that alcohol in the home hasn’t been as affected.
Ben Davies, founder of Vypr, comments:
“Hospitality and leisure businesses need to respond to the customer mindset and develop new propositions in this undeniably difficult operating environment.
“For example, with pump prices determining people’s travel choices, we may see spend increase on hospitality in the suburbs rather than in traditional tourist and hospitality locations, such as city centres.”
He added: “It’s important to look at real-time data as consumer behaviours are subject to fast-moving economic trends. Brands can look to adjust offers and products to reflect consumers’ spending abilities.
“Our data on consumer decision-making from this year indicates we can expect to see further impact on consumer spending, so now is the time for the sector to plan and test, in advance of circumstances that can be foreseen.”